- Bitcoin’s consolidation phase has persisted despite many analysts anticipating volatility during yesterday’s weekly candle close
- The crypto is still trading in the lower-$9,000 region and is showing few signs of garnering any strength
- Analysts are now noting that it could soon see some wild volatility, however, as BTC’s Bollinger Bands haven’t been as tight as they are now since November of 2018
- This was just before the cryptocurrency faced the massive selloff that caused it to slide towards $3,000
- Some analysts are noting that signs are suggesting this volatility will favor buyers
Bitcoin and the aggregated cryptocurrency market have been flashing mixed signs throughout the past several days and weeks.
Although most altcoins remain in firm bear territory, BTC appears to be in a precarious position as it hovers towards the lower end of its long-held trading channel.
Analysts are now noting that the benchmark cryptocurrency may soon provide the crypto market with a decisive trend, as one indicator is suggesting that the crypto is gearing up to make a massive movement.
While looking towards its lower time frames, Bitcoin is expressing some signs of strength. This could mean that the next movement will favor buyers.
Bitcoin’s Bollinger Bands Historically Tight; Signal Volatility is Looming
At the time of writing, Bitcoin is trading up marginally at its current price of $9,310, marking a notable climb from recent lows of $9,100 that were set early yesterday morning following the rejection it faced at $9,400.
Bull’s ability to guard against a decline to $9,000 is undoubtedly positive, and the slight uptrend seen by the crypto over the past several hours does bode well for its short-term outlook.
Nevertheless, this price action still just marks a bout of sideways trading, but Bitcoin’s Bollinger Bands suggest that this may soon come to an end.
While pointing to this technical formation, one popular analyst explained that the last time the crypto’s bands were this tight was right before the November 2018 plunge.
“1D BTC: bbands havent been this tight since Nov 2018,” he said.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
BTC’s Low Time Frame Strength May Bolster Mid-Term Outlook
Bitcoin is showing some signs of low time frame strength, which, if built upon by bulls, could help boost its mid-term outlook.
One trader spoke about this in a recent tweet, noting that BTC’s last range-low sweep and subsequent bounce is bullish, but its reaction to its Monday high of just under $9,400 is now the key level to watch.
“The fact we didn’t get any follow through after the sweep of the highs in the grey circle but instead swept the lows and pumped is kinda bullish imo. Expecting at least a test of last weeks Mon high which will be an important decision point,” he explained.
Image Courtesy of George. Chart via TradingView.
How Bitcoin responds to these short-term levels could help provide insight into which side this looming volatility will favor.
Featured image from Shutterstock. Charts from TradingView.